Migration & sustainable growth for people: investments in micro, small and medium

enterprises and start-ups

38th session of the ACP-EU Joint Parliamentary Assembly, Kigali, 21st November 2019

Catherine Collin, Head of EIB East Africa Regional Representation

A brief recap of EIB’s activities and priorities in the ACP region

Zoom-in on migration and how EIB supports the EU Agenda on Migration

A few examples “from the field”

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The EIB: the EU Bank with a global reach

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‣ Owned by the 28 EU Member States

‣ Natural financing partner for the EU institutions since 1958

‣ Active outside the EU since 1963

‣ Operating in over 160 countries

‣ Around 10% of lending supports development projects (EUR 8.1bn in 2018)

European Investment Bank

• Largest multilateral lender and borrower in the world• We raise our funds on the international capital markets

• We pass on favourable borrowing conditions to clients

• Some 450 projects each year

• Headquartered in Luxembourg with 45 local offices around the globe

• Around 3 500 staff• Including finance professionals, but also engineers, sector economists

and socio-environmental experts

• Over 60 years of experience in financing projects

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The EIB at a glance

EIB in ACP: Mandate & Priorities

Support for SDGs Climate Action Resilience

Gender: protect, impact, invest

Sustainable economic development

Private sector development Vital Infrastructure

• Support to small and medium enterprises and midcaps

• Support to corporates

• Project Finance

• Agriculture, digital economy, health, education

• Financial sector capacity

• Credit lines

• Investment in microfinance

• Investment in equity funds

• Boosting skills

• Water, sanitation, energy, transport, ICT, urban development

• The foundations for sustainable development

• Public and Private Partnerships

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European Economic Diplomacy

European Investment Bank Group

Comprehensive product offering

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Microfinance and SMEs

Equity and funds

investments

Loans and guarantees

Project finance and

PPPs

Local currency lending

Long term public sector

loans

ACP key results in 2018 (1)

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60%

40%

Private Public

• Signatures at an all-time high with EUR1.57bn

• Record level for Investment Facility EUR813m

• Broad range of products: senior debt,equity to local currency lending, technicalassistance, interest subsidies and otherblended finance

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€ 40bn€ 6bn

EIB lending in ACP

2013 - 2018

Total investments supported

in ACP 2013 - 2018

ACP key results in 2018 (2)

Sectors:

Credit lines; 316.3m

Financial Services; 124.91m

Energy; 362.58m

Water, sewerage; 186.4m

Telecommunic

Transport; EUR237.5m

Industry; 106.04m

Health;2.15m

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37%

17%

20%

24%

2%

West Africa andSahel

Central andEastern Africa

Southern Africaand Indian Ocean

Regional Africaand ACP States

Caribbean andPacific

Geographical split:

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Impact-led approach

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JOBS247,000 jobs

sustained in smaller businesses

WATER200 000 peoplebenefiting from clean water and

sanitation

ENERGY26.2 million

households powered

CONNECTIVITY2.8 million new mobile internet

users

Financing projects that make a lasting difference – measuring our impact on the ground

Ex-ante Results Measurements Framework (ReM)Ex-post monitoring and evaluation

Projects signed in 2018 in the ACP are set to support :

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EIB’s contribution to EU Agenda on Migration – WHAT

• Movement of people is to a large extend unpredictable – lack ofeconomic opportunities, lack of access to vital and socialinfrastructure, inequalities, conflict, discrimination or just sheersurvival, to which climate change can be added are some of thereasons behind migration and forced displacement;

• EIB’s contribution to the EU Agenda seeks to respond to long terminvestment needs and focus on building up economic resiliencethrough support for job creation, enhanced social cohesion andclimate action

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EIB’s contribution to EU Agenda on Migration - HOW

Blending – loans / guarantees with grants

Vital infrastructures that improve lives, support growth & create jobs–e.g. urbanisation;

Access to finance for private sector through financial intermediaries(banks and funds)

Capacity building and technical assistance

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What this means in practice ..East and Central Africa Optical Fibre Roll-Out

Digital inclusion

Connectivity and

regional/global integration

Private sector development

Fragile and conflict-affected

countries

Delivery on EU and EIB

priority objectives

EUR 15m loan for improving digital services for over 9 millionpeople in the Democratic Republic of Congo, Uganda, Rwanda,Tanzania & Zambia

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EUR 30m to improve access to finance for up to 17,000

emerging enterprises run by women in Ethiopia

WEDP- Financing Female Entrepreneurs in Ethiopia

Lower Usuthu Smallholder Irrigation Project (LUSIP II) in Eswatini

EUR 36m loan to support the second phase of LUSIP, to

enlarge the available irrigated farmland for local smallholders

East Africa SME and Microfinance Credit lines

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• Long term financing opportunities for private sectoroperators in key sectors of the economy

• expansion, diversification, modernisation and start-up• EUR, USD or local currency (up to 7 years)• Just over EUR 1 bn deployed over the period 2007-2018

in the region through commercial banks andmicrofinance institutions in Kenya, Tanzania, Uganda,Uganda, Rwanda and DRC

• +/- 2000 beneficiary projects (micro & SME) – averagesize of individual loans : EUR 300K

• Combined with ongoing EUR 4.7m TA programme for intermediariesand beneficiaries (including refugee population in Uganda)

Kenya35%

Uganda19%

Tanzania21%

Rwanda11%

DRC2%

Regional12%

Credit lines

Kenya Uganda Tanzania Rwanda DRC Regional

A model replicated in other regions across the ACPs

Amount EUR 25 million

Promoter D.light Design

Countries Ethiopia, Kenya, Nigeria, Tanzania,

Uganda

Description

EUR 25 million corporate loan for access to energy to households and micro-

entrepreneurs in Sub-Saharan Africa

Design, assembling, distribution, and /or financing and installation of about 10 million

solar devices in Sub-Saharan Africa by the promoter over the next 2.5 years

The project is expected to have significant social impact given technology users (and

final beneficiaries) typically are rural and / or low income households and micro-SMEs in

5 targeted countries

D.Light was a portfolio company of Energy Access Venture Impact Fund in which EIB is a

core investor

OFF-GRID SOLAR ACCELERATION

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And to conclude:

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• https://www.youtube.com/watch?v=T_7OmSDSXtc

Thank you !

European Investment Bank